Many people think that they don’t need a life insurance because it is a waste of money. However, they find out in time when they grow older and have a family, kids, or maybe start a business, that it is good to have a life insurance for protecting their loved ones and other assets.
A life insurance could ensure you the amount of money that’s needed if something will happen to you. Unfortunately, a funeral could cost tens of thousands of dollars and we are sure that you don’t want your wife, parents, or kids to suffer financially besides the emotional suffering caused by your death.
Like a good parent that you are, you want the best for your children, and when they grow up they have to go to the college. A good education is one of the most important things you want for your kids. For a quality college education, an additional coverage is essential while your kids are still at home.
Besides other daily expenses, you probably need insurance to cover other debts like a mortgage. And it is good to know that you don’t have to sell the house to stay solvent.
If you have a partnership business, you could talk to your partner and get an insurance. This way, you will have enough cash to buy each other’s interest from your heirs and pay your share of the company’s obligations without having to sell the company itself. This will also be beneficial if something happens to you or your partner.
Estate taxes can be steep, so having insurance in place to pay them is essential to avoid jeopardizing assets or funds built for retirement. Use of insurance for this purpose is most common in large estates, and using permanent (rather than term) insurance assures you that coverage remains until the end of life.
The insurance replaces the income you didn’t have the chance to earn by living and working until retirement due to a premature death. These insurances allow your family to move on and continue their lifestyle, even though your income is no longer available.